coverstory IAPF Celebrating 35 Years Ex-Chairmen look back on the big issues he IAPF celebrates its 35th acts is in pension policy, by seeking to coming year, with a focus on topics Anniversary in 2008 and will be influence the future direction of pensions and activities that include following the Tcelebrating its success at the in Ireland, to provide for financial security journey of the Pensions Green Paper Annual Dinner which will take place for of all retired people and to ensure that and the treatment of ARFs; a major the first time at the CityWest Hotel on the right environment continues to allow membership drive aimed at Defined February 28th. pension schemes to flourish. Contribution schemes, plus finding new ways to get even more member Established in 1973 just as Irish Industry IAPF is also well regarded as an participation at conferences and seminars was beginning to enjoy the fruits of authoritative voice in its dealings with and the commissioning of a new set of the policy inititives to attract overseas legislators and regulators, in raising ‘Simple’ investment guides on LDI, hedge investment, the Association is unique in pension awareness (at home and in funds and bonds. The IAPF has been that it represents members in all areas Europe) and leading the pensions debate and will continue to work closely with the of Irish pension investment and provision both within the industry and in the media. EFRP in looking at the issues surrounding – employers, employees, fund managers, The Association also offers a range The Solvency II Directive. trustees and administrators and pension of services to members, such as the providers. IAPF members provide trustee training programme, investment Thirty-five years and still going strong. retirement security to over 200,000 Irish conferences, and seminars, research Whether you are an active member of the workers; they pay pensions to nearly papers and surveys, pension-related Association or only attend the occasional 70,000 retirees and are responsible for booklets and policy documents. seminar and Annual Dinner, the IAPF over €90 billion in retirement saving. The Benefits, Membership and Investment hopes to keep delivering the service – and The two key areas in which the IAPF committees all have full agendas for the comradeship – that began back in 1973. 20 irishpensions January 2008 coverstory HOW Was IT FOR YOU? FOrmer Iapf Chairman Take A LOOK Back Brian Duncan: I had the pleasure of serving as Chair of the Association from 1979 to 1982, three year term in contrast to the more normal two years. It is widely believed amongst some of the older members that I refused to leave office; the more mundane explanation regrettably is that it was agreed I should continue as Chair in anticipation of the imminent publication of the Government White Eamonn Heffernan, report in January 1988, it recommended Paper on Pensions. 1987 – 1989: Surprisingly, maintenance of the status quo although many of the issues that a minority of Board members the tax My dim recollection is that much of my dominated the agenda of exemption should be withdrawn for lump time as Chair was dominated by the the IAPF Council during my sum rights accumulating from the date of expected publication of the White Paper. years as Chairman still remain on today’s the change. Ironically within a month of This followed the publication of the Green pensions agenda. the publication of the Board’s report, the (Discussion) Paper “A National Income- then Minister for Finance (Ray Mc Sharry) Related Pension Scheme” in 1976 by the When I took over in May 1987, the main announced in his Budget the introduction then coalition government. Interestingly focus was on the work of the National of a ‘once off’ levy on the investment one of the options referred in the Green Pensions Board (NPB) which had been income and realised gains of pension Paper, was to subsume private schemes established by Government in early funds, designed to raise a sum of £15m. into a state scheme! I love that word IAPF “subsume”. I doubt if any equivalent 1986. Its terms of reference required it to bring forward proposals for the This was a period when the government document today would even consider this regulation of pension schemes under a of the day was setting about correcting as an option. And of course, we are still number of headings, including “standards the public finances, and pension funds waiting for a specific proposal 31 years later. Celebrating of funding and requirements for ensuring were seen as a ‘soft target’. The Minister financial security of occupational pension and his officials, showed that they had The considered view of the Association schemes and their funds …and to advise little understanding of how pension funds at the time was that the best way of the Minister on the most suitable method improving pension coverage was to 35 Years of ensuring that the proposed regulatory “After much debate within significantly increase the flat rate of social arrangements are effectively monitored.” the Association, and welfare pension, as resources permit. Ex-Chairmen look back on the big issues Notwithstanding all the analysis, research The NPB subsequently published its among other interested and agonising that has been done in the First Report covering these (and other) parties, the Pensions Act meantime, I am still of the view that this is issues in January 1987. The IAPF was was eventually signed into the most effective approach. I also have a well represented on the Board and legislation by the President clear recollection of meeting with Charles Haughey, the minister of the day during there was widespread support among on 24th July 1990. its membership for the recommendations ” which he indicated that it was important in this report. Throughout the period operated. Our objective became one to get a consensus on the way forward 1987 to 1989 the major focus was on of ensuring that the levy was workable and that he thought that this might be converting the recommendations of the and, as the Minister had promised in his best achieved through the establishment NPB into workable legislation and after a budget speech, was ‘once off’. of a National Pensions Board. I will leave number of false starts and various broken others to judge whether or not he was promises the Pensions Bill was eventually The Department’s main objective was right! published by Government. After much to raise tax revenue of £15m and debate within the Association, and among the methodology and rates had been I was very fortunate in having Louis other interested parties, the Pensions Act suggested by IAPF as being sufficient to Slater as Secretary during my term as was eventually signed into legislation by raise this sum. Whenever I have met Liam Chairperson, Louis having previously the President on 24th July 1990. Murphy (the responsible official in the served as Chairman. We continued to Department) in the interim period he has develop good relations with our equivalent The terms of reference of the NPB also not been slow to remind me that they fell organisation in the UK, which ultimately required it to examine “the tax treatment 6% on imputed investment yield (9% of led to the establishment of the European of pension contributions, pension funds asset value as of january 1, 1998) - short Federation for Retirement Provision at a and pensions generally” and in its of their target – they only raised £11m! meeting in Guernsey. January 2008 irishpensions 21 coverstory Anne Maher: I was 0.08% of pension fund assets would the first Pensions Forum in Dublin Castle honoured to be IAPF be invested in venture capital. It was a and the subsequent report seem to me to Chairman from 1993 to satisfactory outcome all around and the stand the test of time and are still worth 1995. money invested by the funds re-activated considering. the dormant Irish venture capital market When I took up office in May 1993 we with several new players entering the IAPF also recognised the need to develop were in the middle of trying to respond field. The discussions on the tax treatment its role and influence in the EU pension to a Budget initiative of the then Minister of pension funds also ended happily with scene around this time and we saw the for Finance, Bertie Ahern, which had the general acceptance of the strongly held Irish pension model recognised as a good objective of getting pension funds to IAPF view that a voluntary private pension one. invest in venture capital and the bigger system could not succeed without tax picture of the tax treatment of pension encouragement. As I look back, I remember it as a good funds was also topical. time working with a great Council and The next issue on which Council focused with the IAPF’s remarkable co-ordinator, The venture capital issue culminated in was the need for Ireland to develop a Camilla McAleese, who made sure IAPF a Pension Fund Investment Report and national pension policy. IAPF kick-started remained high on all of our agendas. We an agreement by the pension funds that this process in March 1995 when it held also had some good fun! Paul O’Faherty - In early 1998 we celebrated the 25th 1997-1999: I took on the anniversary of the IAPF in style at our “our submission mantle of the Chairmanship Annual Dinner in the Burlington at which was a great from Brian Aylward in May we unveiled the new logo, which it’s 1997 and it was straight nice to see has stood the test of time.